Company Update: JSW Steel

Company Update: JSW Steel

JSW Steel’s JSW Bengal Steel Ltd has been allotted 3 coal reserves in West Bengal for its 10mn tonnes steel plant project at Salboni in the state.

The reserves allocated will be soft coking coal and thermal coking coal. Kulti and Sitarampur together have a reserve of 300mn tonnes of soft coking coal and Ichhapur has 110mn tonnes of thermal coal.

In addition, company has been allocated coal mine at Gourandih of thermal coal reserves of 100-120mn tonnes with 50% share.

This is a positive development for JSW steel as it will provide necessary coal linkages for its steel project in West Bengal. The first phase of 3mtpa project is expected to come on stream by 2012 and the entire 10mtpa is expected to be completed by 2020.

We remain NEUTRAL on JSW Steel.